General Counsel Report Finds Legal Leaders Facing Increased Complexity, Unpredictability, Regulatory Activity and Costs

Rhea-AI Summary

FTI Consulting (NYSE: FCN) and Relativity released the seventh annual General Counsel Report on Feb 18, 2026, showing legal departments face rising complexity, unpredictability and costs.

Key findings: 87% see accelerating risk/demand, 97% saw increased work volume, 39% use AI/generative AI, and 57% report higher disputes costs.

Positive

• 87% reported accelerating risk and demand
• 97% experienced increased legal work volume
• 39% adopted AI/generative AI (10% increase YoY)
• 77% are proactive on information governance

Negative

• 57% reported rising costs for disputes and investigations
• 30% experienced increased regulatory activity
• New regulations and laws were the top driver of added work

Key Figures

Risk acceleration: 87% Proactive governance: 77% AI usage: 39% +5 more

8 metrics

Risk acceleration 87% Said increasing rate of risk and demand is accelerating

Proactive governance 77% Reported being proactive about information governance across technology and business

AI usage 39% Cited use of AI and generative AI to handle increased risk and demand

Work volume increase 97% General counsel reported increases in work volume in one or more categories

More regulatory activity 30% Said they experienced more regulatory activity this year

Regulatory disputes share 37% Attributed disputes and investigations work to regulatory and criminal matters

Data breach driver 34% Noted data breaches among primary drivers of disputes and investigations

AI risk concerns 70% Discussed generative AI risk concerns anecdotally during interviews

Market Reality Check

Price: $162.62 Vol: Volume 482,890 is 1.61x t...

high vol

$162.62 Last Close

Volume Volume 482,890 is 1.61x the 20-day average of 299,782 shares. high

Technical Shares at $160.23, trading below 200-day MA of $166.56 and 16.74% under 52-week high of $192.44.

Peers on Argus

FCN is down 1.58% while peers are mixed: HURN +2.66%, CRAI +2.83%, DGNX +3.80%, ...

2 Up

FCN is down 1.58% while peers are mixed: HURN +2.66%, CRAI +2.83%, DGNX +3.80%, BAH -3.78%, ICFI -1.96%. Momentum scanner only flags DGNX and VRSK moving up, indicating stock-specific factors rather than a broad consulting sector move.

Historical Context

5 past events · Latest: Feb 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 09	Healthcare hires	Positive	-1.4%	Added two senior healthcare leaders to build Middle East advisory capability.
Feb 09	M&A hire	Positive	-1.4%	Appointed senior M&A and due diligence leader to strengthen transaction services.
Feb 05	Earnings call date	Positive	+1.8%	Announced timing for Q4 and full-year 2025 results and conference call.
Feb 05	Chemicals experts hire	Positive	+1.8%	Hired two senior chemicals specialists to expand Transformation practice in Europe.
Feb 04	Supply chain hire	Positive	+1.6%	Brought in senior procurement and supply chain expert to lead transformations.

Pattern Detected

Recent FCN news has focused on senior hires and capability expansion, with generally positive items sometimes met by negative price reactions, though most events saw aligned moves.

Recent Company History

Over the last few weeks, FCN has emphasized expansion through senior hires across healthcare, chemicals, and business transformation practices, plus an upcoming Feb 26 earnings release. Most of these strategic growth announcements were positive in tone. Market reactions have been mixed: recent hires on Feb 5 and Feb 4 aligned with gains of 1.84% and 1.56%, while similar expansion news on Feb 9 coincided with a -1.36% move, showing no consistent pattern for this news type.

Market Pulse Summary

This announcement reinforces FCN’s positioning at the intersection of legal, regulatory and technolo...

Analysis

This announcement reinforces FCN’s positioning at the intersection of legal, regulatory and technology-driven risk. The General Counsel Report shows 87% of leaders see accelerating risk and demand, with 39% incorporating AI into their strategies and 30% facing more regulatory activity. These data points underscore structural demand drivers for advisory and technology services. Investors may focus on how FCN converts these trends into revenue growth, margins and capital allocation in upcoming filings and calls.

Key Terms

information governance, artificial intelligence, generative AI, data privacy, +3 more

7 terms

information governance technical

"they are being proactive about information governance across technology and the business"

A set of policies, processes and tools that a company uses to collect, store, protect, organize and dispose of its information, including financial records, customer data and internal reports. It matters to investors because good information governance reduces legal and regulatory risk, prevents costly data breaches, keeps records accurate for decision-making, and helps the business run efficiently—much like a well-organized filing system that saves time and avoids costly mistakes.

artificial intelligence technical

"use of artificial intelligence and generative AI as part of their strategy"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

generative AI technical

"use of artificial intelligence and generative AI as part of their strategy"

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

data privacy technical

"Regulatory activity and data privacy persist as top risks, consistent"

Data privacy is the practice of protecting people’s personal and sensitive information—like names, health details, financial records, or browsing habits—from unauthorized access or misuse. For investors, strong data privacy is like good locks and alarms on a business: it preserves customer trust and revenue, reduces the risk of fines and lawsuits, and lowers the chance of costly breaches that can hurt a company’s reputation and stock value.

data breaches technical

"34% noted data breaches were among the primary drivers"

An incident in which outsiders or unauthorized insiders access, copy, or expose a company’s private digital information—like customer records, financial files, or trade secrets—without permission. Think of it as burglars breaking into a locked filing cabinet and walking off with sensitive papers. For investors it matters because breaches can trigger costly fines, legal claims, emergency cleanup, lost customers and sales, and a damaged reputation that can reduce a company’s earnings and share price.

GDPR regulatory

"Compared to the immediate post-GDPR days, regulation and AI have taken center stage."

General Data Protection Regulation is a law that sets rules for how organizations must collect, store and use personal data about people, and gives individuals rights over that data. It matters to investors because noncompliance can lead to large fines, higher operating costs and damaged reputation, while strong compliance can be a competitive advantage—think of it as a strict safety code for handling customer information.

quantitative survey technical

"as well as a separate quantitative survey of more than 200 general counsel"

A quantitative survey is a structured questionnaire that collects numerical answers from a group of people or organizations so results can be counted and compared. Investors use these surveys like a thermometer or poll to gauge things such as customer demand, market sentiment, or adoption rates; the numbers help estimate future sales, risks, or trends and can influence valuation and trading decisions.

AI-generated analysis. Not financial advice.

WASHINGTON, Feb. 18, 2026 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) and global legal technology company Relativity today announced findings from the seventh-annual edition of The General Counsel Report. Legal leaders reported more than 20 areas as driving increases in work volume for their departments. During the past year, risk, demand and operations have become more complicated for 60% of respondents and more unpredictable for one-third.

The General Counsel Report features results from qualitative and quantitative surveys. Together, the data pools examined how organizations have responded during the past year of technological, policy, geopolitical and economic disruptions.

“General counsel are meeting the current moment with composure, resourcefulness and a keen sense of the impact they have within their organizations,” said Sophie Ross, Global Chief Executive Officer of FTI Technology. “According to this year’s study, legal department leaders have been steadfast in balancing the increasing demands of risk mitigation against pressure to enable innovation, even as they experience a higher volume of work across more than 20 unique categories. Importantly, as general counsel become more sophisticated in using technology to enable efficiencies, they remain focused on the value of trusted relationships and outside expertise to help them navigate unpredictability and new challenges.”

Key findings covered in part one of The General Counsel Report include:

• 87% said the continually increasing rate of risk and demand is accelerating within their organization.
• Leaders’ confidence in their readiness for handling top risks improved over the previous year, and 77% said they are being proactive about information governance across technology and the business.
• 39% of respondents cited use of artificial intelligence and generative AI as part of their strategy for handling increased risk and demand, a 10% increase from last year’s survey.
• 97% of general counsel interviewed reported increases in work volume in one or more of the categories. The addition of new regulations and laws was the most frequently cited driver of work increases, with tariffs and contract management tied for second.
• Regulatory activity and data privacy persist as top risks, consistent with the previous year, and 30% of respondents have experienced more regulatory activity this year.
• 37% attribute their disputes and investigations work to regulatory investigations and other criminal matters; 34% noted data breaches were among the primary drivers.
• The cost of disputes and investigations has increased for 57% of respondents.
• New areas of legal work have emerged for 33%.
• CIO respondents agree that risk, demand and operations have increased in cost, complexity and unpredictability.
  
  

“Robots and regulations have topped data privacy and data protection in the minds of general counsel — at least for the moment,” said David Horrigan, Discovery Counsel and Legal Education Director at Relativity. “Compared to the immediate post-GDPR days, regulation and AI have taken center stage. In fact, 87% of chief legal officers reported that their departments used generative AI for legal functions over the past year, and generative AI was not even one of the top legal risk concerns.”

Ari Kaplan, Principal of Ari Kaplan Advisors, added, “An interesting aspect of this year’s study was the nuance in how general counsel view AI in the context of risk. While generative AI wasn’t ranked as a top five risk by most respondents, 70% did discuss concerns anecdotally during interviews. This finding provides insight into how pervasive AI has become across every aspect of the legal department and the way legal leaders approach it: they’re scrutinizing it but also view it as an opportunity for improving their work.”

The General Counsel Report is based on one-on-one interviews between Ari Kaplan Advisors and chief legal officers at large corporations around the world, as well as a separate quantitative survey of more than 200 general counsel in a dozen countries. For the first time, this year’s findings include insights from c-level technical leaders, including chief information officers and heads of transformation within large organizations, providing commentary on the dynamics between legal department leaders and their cross-department counterparts. Part one of The General Counsel Report is available for download here. Part two will be released in March.

Demographics and Methodology
In September 2025, Ari Kaplan conducted personal interviews with 30 leaders serving as general counsel or chief legal officers of their organizations. Sixty-three percent have a role with global responsibilities and 59% work in organizations with more than $500 million in annual revenue. He also interviewed technology and digital transformation leaders at global organizations for anecdotal insights into how their responsibilities and views overlap with the general counsel. Separately, in the summer of 2025, Censuswide conducted a quantitative survey of 224 general counsel and chief legal officers at organizations with more than $100 million in annual revenue and more than 1,000 employees in South America, North America, Europe and Asia Pacific.

About FTI Consulting
FTI Consulting, Inc. is a leading global expert firm for organizations facing crisis and transformation, with more than 8,100 employees located in 32 countries and territories as of September 30, 2025. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated $3.70 billion in revenues during fiscal year 2024. More information can be found at www.fticonsulting.com. 

About Relativity
Relativity is a leading legal data intelligence company that builds technology to help users organize data, discover the truth, and act on it. Its extensible, AI-powered cloud platform, RelativityOne, transforms complex data into actionable insights at massive scale for litigation, investigations, regulatory inquiries, data breach responses, and other legal use cases. The world’s largest law firms and corporations, government agencies, and a robust network of channel partners rely on Relativity’s legal AI software to securely surface and manage the most relevant and impactful information in their matters. The company also expands access to technology by providing its platform at no cost to academic institutions through its Relativity Academic program and to organizations supporting pro bono legal work through its Justice for Change initiative.

FTI Consulting, Inc.
555 12^th Street NW
Washington, DC 20004
+1.202.312.9100

Investor Contact:
Mollie Hawkes
FTI Consulting
+1.617.747.1791
mollie.hawkes@fticonsulting.com

Media Contacts:
Ashley Allman
FTI Consulting
+1.206.369.5209
ashley.allman@fticonsulting.com

Mia McGee
Relativity
+1.773.519.6529
mia.mcgee@relativity.com

FAQ

What did FTI Consulting (FCN) report about legal work volume in the General Counsel Report?

Direct answer: 97% of general counsel reported increased legal work volume in one or more categories. According to FTI Consulting, the study found workload growth tied to new regulations, tariffs, and contract management, with 20+ categories driving higher demand.

How prevalent is generative AI use among legal departments in the FCN General Counsel Report?

Direct answer: 39% of respondents reported using AI and generative AI as part of their strategy. According to FTI Consulting, this represents a 10% increase from last year and shows growing but cautious adoption across legal functions.

What percentage of legal leaders in the FCN report said risk and demand are accelerating?

Direct answer: 87% of respondents said risk and demand are accelerating within their organization. According to FTI Consulting, leaders also reported improved readiness for top risks and increased focus on information governance across technology and business.

How has regulatory activity impacted legal work according to FTI Consulting's report (FCN)?

Direct answer: 30% reported more regulatory activity this year, and new laws were the top driver of work increases. According to FTI Consulting, regulatory investigations, tariffs, and contract management notably contributed to higher dispute and investigation workloads.

What did the FCN report say about the cost trends for disputes and investigations?

Direct answer: 57% of respondents reported increased costs for disputes and investigations. According to FTI Consulting, rising regulatory scrutiny and data breaches are primary contributors, pressuring legal budgets and external counsel spending across organizations.

Who participated in the General Counsel Report that FTI Consulting published (symbol FCN)?

Direct answer: The study included 30 one-on-one interviews and a quantitative survey of 224 general counsel. According to FTI Consulting, interviews were global and the survey covered leaders at organizations with $100M+ revenue across multiple regions.